Extensive Economic Reform
Economic reform has been extensive. Over 1,200 state-owned enterprises (mostly small) have been privatized. Preparations for privatization and/or sector liberalization are underway for the remaining parastatals, including telecommunications, electricity, water service, airports, ports, and the railroads. The government frequently selects a strategic foreign investor when privatizing a parastatal. Additionally, customs duties have been reduced, and customs management has been streamlined and reformed. The government introduced a highly successful value-added tax in 1999 as part of its efforts to increase domestic revenues. Plans for 2001-02 include Commercial Code reform; comprehensive judicial reform; financial sector strengthening; continued civil service reform; improved government budget, audit, and inspection capability; and introduction of the private management of water systems in major cities. The process of liberalization in Mozambique was an initiative from the World Bank. In the Mid 1990s, World Bank made it necessary for the nation to liberalize their cashew sector. The lifting of protectionist measures for the cashew industry in Mozambique was an attempt to increase the incomes of cashew farmers and reduce poverty in the country. This policy of liberalization has been one of most contentious policies.
Read more about this topic: Economy Of Mozambique
Famous quotes containing the words extensive, economic and/or reform:
“In an extensive reading of recent books by psychologists, psychoanalysts, psychiatrists, and inspirationalists, I have discovered that they all suffer from one or more of these expression-complexes: italicizing, capitalizing, exclamation-pointing, multiple-interrogating, and itemizing. These are all forms of what the psychos themselves would call, if they faced their condition frankly, Rhetorical-Over-Compensation.”
—James Thurber (1894–1961)
“The reality is that zero defects in products plus zero pollution plus zero risk on the job is equivalent to maximum growth of government plus zero economic growth plus runaway inflation.”
—Dixie Lee Ray (b. 1924)
“The reform [of the civil service] should be thorough, radical, and complete.”
—Rutherford Birchard Hayes (1822–1893)